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Technology Stocks : Deswell Industries (DSWL) -- Ignore unavailable to you. Want to Upgrade?

To: Bobcat who wrote (1100)	11/5/1998 12:04:00 PM
From: j rector	Read Replies (2) \| Respond to of 1418

Bobcat, If you examine the historical PE of DSWLF, other than the last few months, it has generally been in the range of 7-13. I think a reasonably average is 10. If (and ultimately when) PE's return to their historical norm, DSWLF will be well above $20/share. Also, i think (unless they buy alot more equipment soon) they will depreciate alot of their equipment within the next two years and earnings will rise without sales increases. A more interesting measure than PE is price / cash flow.